Gold hits new 2025 highs amid rising investor anxiety from Trump's trade rhetoric.
Despite a rise in the US Dollar Index, Gold's ascent signals strong safe-haven demand.
Geopolitical tensions in the Middle East escalate, alongside potential US economic measures against Russia.

Gold price advances over 0.39% late in the North American session, with the precious metal climbing decisively above the psychological $2,650 figure with buyers setting their sights at the record high of $2,790. At the time of writing, the XAU/SD trades at $2,755 after bouncing off daily lows of $2,741.

The non-yielding metal extended its gains as United States (US) President Donald Trump trade rhetoric broadened from Mexico, Canada and China to the Eurozone. Consequently, as traders grow uncertain about the "trade war" outcome, bought Bullion which has climbed to its highest level during 2025, at $2,763.
Gold price rises as real yields ascends one basis points. Measured by the 10-year Treasury Inflation-Protected Securities (TIPS) yield sits at 2.18%.
President Trump confirmed that universal tariffs on all imports to the US are under consideration as well and will come at a later stage, Reuters reports.
"(Trump) has been perhaps just a shade less hawkish on tariffs as feared, which helps — less/lower tariffs is taken to indicate lower inflation hence potential for more rate cuts," said Tai Wong, an independent metals trader quoted by Reuters.
Market participants are pricing in near-even odds that the Fed will cut rates twice by the end of 2025, with the first reduction occurring in June.(Cay) Newsmaker23

Source: Fxstreet